- What is Auto Trading?
Auto trading involves the use of systems and tools to automate trades in such a way that traders do not have to manually press the execution button.
This is a similar concept to that used in Forex trading, where traders are able to code various messages (e.g. on the MT4 Platform), in such a way that even when they are not around, the MT4 system picks trades based on those rules and executes accordingly.
To find out excatly how automative forex robots work, 7binaryoptions.com offers amazing insite into their workings and explain how effective they can be.
In binary options, there is a slight adjustment in the sense that binaries have expiry periods, whereas, forex trading has no expiration unless you insert stop loss/take profit limits, or run out of account money/margin limits.
- Types of Auto Trading
This type of trading earned its name from the social media features included in the system. Social/Copy trading basically refers to the form of trading where traders come together for the common good helping each other out. It is a platform developed to allow traders to copy others’ trades for given period.
This activity can involve copying multiple trades at a time from amongst different traders or simply copying the trades of a single expert trader. Most forex platforms already have this feature including Ayondo Social trading platform, eToro platform and Tradeo, among others.
As for binary options, good examples come in the form of BestoCopy, ZuluTrade, and AnyOption’s CopyOp social trading platform.
Binary Options Robots
These are pretty common these days as many developers and expert traders join hands to come up with trading robots to sell to the masses that salivate to join the binary options market, but lack the skills and experience to succeed.
The best example in this case is Binary-Option-Robot.com and BinaryOptionRobot.com.
Binary Options Auto Signals
This is pretty similar to Binary Options Robots, but in this case, the system is designed in such a way that traders receive the signals first, after which, they can choose whether or not to execute.
These signals are auto-generated based on a number of technical indicators. In most cases, traders also have the opportunity to activate the auto-trading button. The ideal example in this case includes Binaryhedgefund.com, SignalPush.com and Algo-Bit.com, among others.